eQ PLC INTERIM REPORT
26 April 2019, at 8:00 AM
January to March 2019 in brief
| Key ratios | 1-3/19 | 1-3/18 | Change % | 1-12/18 |
| Net revenue, Group, M€ | 11.6 | 9.6 | 21% | 45.4 |
| Net revenue, Asset Management, M€ | 10.3 | 8.5 | 21% | 36.7 |
| Net revenue, Corporate Finance, M€ | 1.1 | 0.4 | 136% | 7.1 |
| Net revenue, Investments, M€ | 0.2 | 0.7 | -76% | 1.8 |
| Net revenue, Group administration and | ||||
| eliminations, M€ | 0.1 | 0.0 | -0.1 | |
| Operating profit, Group, M€ | 5.3 | 4.4 | 21% | 22.4 |
| Operating profit, Asset Management, M€ | 5.3 | 4.3 | 23% | 19.5 |
| Operating profit, Corporate Finance, M€ | 0.3 | -0.1 | 275% | 3.2 |
| Operating profit, Investments, M€ | 0.2 | 0.7 | -76% | 1.8 |
| Operating profit, Group administration, M€ | -0.4 | -0.5 | -7% | -2.1 |
| Profit for the period, M€ | 4.2 | 3.5 | 21% | 17.8 |
| | ||||
| Key ratios | 1-3/19 | 1-3/18 | Change % | 1-12/18 |
| Earnings per share, € | 0.11 | 0.09 | 20% | 0.47 |
| Equity per share, € | 1.25 | 1.27 | -2% | 1.65 |
| Cost/income ratio, Group, % | 54.3 | 54.2 | 0% | 50.5 |
| Liquid assets, M€ | 32.1 | 25.8 | 24% | 25.7 |
| Private equity fund investments, M€ | 17.4 | 18.8 | -7% | 16.9 |
| Interest-bearing liabilities, M€ | 0.0 | 0.0 | 0% | 0.0 |
| Assets under management, € billion | 10.5 | 8.6 | 21% | 9.5 |
Janne Larma, CEO
The profit development of the Group has continued to be excellent. The Group's net revenue was EUR 11.6 million and operating profit EUR 5.3 million in the first quarter. Both grew by 21% from the corresponding period last year.
eQ Asset Management’s strong growth continued
The sentiment in the equity market has been very positive during the first months of the year. In the first quarter, the global share index increased by almost 15%. In April, many stock exchange indices rose near all-time highs and some stock indices reached their highest levels ever. Interest rates have fallen across the board during the first months of the year, and the risk appetite of investors has increased.
Within eQ Asset Management, the demand for real estate and private equity asset management products continued to be very strong. In real estate asset management, net subscriptions amounted to EUR 110 million in the first quarter, and the fund capital of our two real estate funds exceeded EUR 1.4 billion at the end of March. Private equity asset management has also gathered a lot of new capital. USD 172 million has been raised to the eQ PE XI US private equity fund, and the final close of the fund will take place in June. The raising of funds to the eQ Private Credit II Fund has ended at EUR 74 million. Within traditional asset management, the return of the funds managed by eQ continues to be good. During an investment period of three years, 57% of the funds managed by eQ have surpassed their benchmark indices.
The net revenue of eQ Asset Management increased by 21% on the previous year to EUR 10.3 million. Operating profit grew by 23% to EUR 5.3 million. Real estate and private equity management fees grew by EUR 1.8 million on the previous year, i.e. by 33%. The management fees from traditional asset management fell by EUR 0.3 million, mainly due to the market movement in the last months of 2018. Performance fees increased by EUR 0.2 million.
Advium’s fee income increased from the previous year
In the Corporate Finance segment, Advium acted as advisor in two transactions that were finalised during the period under review. Advium acted as advisor to the Boards of Kotipizza Oyj and Pöyry Plc related to public cash tender offers made on them. The public cash tender offers were published towards the end of 2018 and carried out in 2019. These assignments were mainly invoiced last year.
The market activity in corporate and real estate transactions continues to be at a good level. Advium’s net revenue was EUR 1.1 million (EUR 0.4 million) and operating profit EUR 0.3 million (EUR -0.1 million).
The operating profit of Investments was positive
The operating profit of the Investments segment was EUR 0.2 million. At the end of March, the balance sheet value of the private equity fund investments was EUR 17.4 million. In January, eQ Plc made a USD 1.0 million investment commitment in the eQ PE XI US Fund.
***
eQ’s interim report 1 January to 31 March 2019 is enclosed to this release and it is also available on the company website at www.eQ.fi.
Additional information: Janne Larma, CEO, tel. +358 9 6817 8920
Distribution: Nasdaq Helsinki, www.eQ.fi, media
eQ Group is a Finnish group of companies that concentrates on responsible asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately EUR 10.5 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.
More information about the Group is available on our website www.eQ.fi.
Attachment